The semiconductor industry has been one of the strongest-performing sectors in the U.S. stock market in recent months.
This has come even as headline-grabbing stocks like Apple, Amazon.com and Facebook have cooled off. The outstanding performance of the sector is reflected in this week’s Momentum Trader Alert recommendation.
Founded in 1980 and headquartered in Fremont, California, Lam Research Corporation (LRCX) designs, manufactures, markets and services semiconductor processing equipment used in the fabrication of integrated circuits. Lam is also a leading supplier of front-end wafer processing equipment to the worldwide semiconductor industry.
Lam Research Corporation (LRCX) vs. the S&P 500 year to date.
Momentum Trader Analysis
Buy Lam Research Corporation (LRCX) at market today and place your stop at $180.00.
With the stock currently overbought, I am holding off on recommending options this week.
If you want to take on some additional risk with your current positions, I recommend:
1. Buy the Altbaba (AABA) January 2018 $67.50 calls (AABA180119C00067500), which last traded at $4.58 and expire on Jan. 19.
2) Buy the Amphenol (APH) January 2018 $85 calls (APH180119C00085000), which last traded at $3.32 and expire on Jan. 19.
3) Buy the CBOE Holdings (CBOE) January 2018 $105 calls (CBOE180119C00105000), which last traded at $6.60 and expire on Jan. 19.
You stopped out of Intuitive Surgical (ISRG) on Oct. 19 at $351 for a 20.07% gain.
You currently have four other double-digit-percentage gainers in your Momentum Trader Alert portfolio. All but one position is currently profitable.
Nicholas A. Vardy